Short Term Vs. Long Term

There are countless examples where fat margins in the short term guarantee trouble in the long term.   Do companies even have a choice here if shareholders are putting the pressure to chase the sure thing?

Part of the answer, academics and industry analysts say, is that for years American carmakers made so much money from high-margin behemoths like pickup trucks and S.U.V.’s that ignoring quality held little financial downside — at least in the short term.

via G.M. and Ford, Channeling Toyota’s Focus on Quality – NYTimes.com.

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